Table 2-7 Table 2-7 Shows the Output Per Week of Week

question 43

Multiple Choice

Table 2-7
Table 2-7 shows the output per week of two people,Minnie and Mickey.They can either devote their time to making hats or making umbrellas.
-Refer to Table 2-7.Which of the following statements is true?

• A)Mickey has an absolute advantage in making both products.
• B)Minnie has an absolute advantage in making both products.
• C)Minnie has an absolute advantage in making hats and Mickey in making umbrellas.
• D)Minnie has an absolute advantage in making umbrellas and Mickey in making hats.

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Definitions:

Management Reorganizes

Refers to the process of changing the structure or allocation of responsibilities within a company's management team, aiming at increasing efficiency or meeting new strategic goals.

Liquidation

Ending a firm’s life by selling off its assets.

Trustee

An individual or organization designated to hold and manage assets on behalf of others, often in a trust fund.

Illegal Payments

Transactions made that are prohibited by law, often in the form of bribes or kickbacks.